I've been writing that we are in the midst of a revolution driven by radical advances in technology, globalism and shifting demographics; the result of which is a time of rapid revolutionary change impacting all institutions and individuals. In the end many postive changes for humanity will result, but the process of going thru change will entail some great pain - partiularly as it pertains to large institutions like governments.
IF THERE was ever a week to be depressed about the euro, this was it. After an age of dithering, Europe’s politicians cobble together a colossal rescue package for Greece, worth some €110 billion ($145 billion), nearly three times the level discussed only three weeks ago—and behold the results: carnage on the streets of Athens, where three people lost their lives, and no respite in the markets.
The idea that governments solve problems has become so mainstream yet is divorced from the reality of what they've been up to over the past few decades - spending more than they have to spend and borrowing the rest. More importantly these institutions and their populist participants have not been adequately changing how things are done or facing key problems. As a result the opportunity for needed improvements have not materialized. Read this excerpt from the Economist's recent article, The Sad End of the Party:
At the same time Greece’s worst habits—the plundering of state coffers, the hiring of cronies, the abuse of public office, impunity for the powerful—were multiplying. A handful of Cassandras said it would all end in tears but, while the party lasted, nobody listened.
This quote could be easily applied to the US or most of the other significant nations today. Putting aside the unique aspects of Greece's culture which includes the idea of a manipulating “foreign finger” as a recurring motif, what we are truly seeing in the EU, is that which we will see across many economies in the coming months and years. A reconciliation for irresponsible behaviors that created imbalances which will be addressed by the markets. Increasingly people will question the purpose of the government's they have in place and what they've been up to. Look for much more upheavel in the months and years ahead around this. Watch the video below.